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The Arbitrage Pricing Theory (APT) Differs from the Capital Asset

Question 24

Multiple Choice

The arbitrage pricing theory (APT) differs from the capital asset pricing model (CAPM) in that it suggests that stock prices


A) are influenced only by the market itself.
B) can be influenced by a set of factors in addition to the market.
C) are not influenced at all by the market.
D) cannot be influenced at all by the industry factors.

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